Carpenter Technology Set to Report Q3 Earnings: What's in Store?

Carpenter Technology Corporation CRS is scheduled to report third-quarter fiscal 2025 results on April 24, before the opening bell.

The Zacks Consensus Estimate for CRS’s sales is pegged at $731.5 million, indicating 6.8% growth from the year-ago reported figure.

The consensus estimate for Carpenter Technology’s earnings is pegged at $1.74 per share. The Zacks Consensus Estimate for CRS’s earnings has moved up 2.9% in the past 60 days. The estimate indicates year-over-year growth of 46.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

CRS’s Solid Earnings Surprise History

Carpenter Technology’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 15.7%.

What the Zacks Model Unveils for Carpenter Technology

Our proven model does not conclusively predict an earnings beat for CRS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here, as you can see below.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: Carpenter Technology has an Earnings ESP of -0.18%.

Zacks Rank: CRS currently flaunts a Zacks Rank of 1.

Factors Likely to Have Shaped CRS’s Q3 Performance

Carpenter Technology has been witnessing growth across its end-use markets, especially in aerospace, defense and medical applications, which is anticipated to continue throughout fiscal 2025 and get reflected in the third-quarter fiscal 2025 results. In the quarter, demand is expected to have accelerated across all aerospace submarkets as the supply chain ramped up to meet increasing travel demand.

However, the company has been bearing the brunt of labor and chip shortages, which are likely to have affected its performance.

Nonetheless, gains from increased productivity across Carpenter Technology’s facilities, higher prices, an improved product mix and increased volumes are expected to have negated these headwinds. The impacts of these are likely to get reflected in the company’s margin results.

We expect the Specialty Alloys Operations segment’s sales to be $661 million in the quarter, indicating growth of 8.7% from the year-ago quarter’s reported figure. Our model estimates the segment to sell 47,742 pounds in the third quarter of fiscal 2025, indicating a dip of 6.1% from that reported in the third quarter of fiscal 2024. We expect the operating profit to be $142 million, indicating growth from the $103 million reported in third-quarter fiscal 2024.

We expect Performance Engineered Products’ net sales to dip 0.5% year over year to $102 million. Our model predicts the segment to sell 2,569 pounds in the quarter, indicating a decrease of 1.9%. Our estimate for the segment’s operating profit is $11.2 million. The segment reported an operating profit of $9.2 million in the year-ago quarter.

Carpenter Technology Stock’s Price Performance

CRS shares have skyrocketed 116.5% in the past year compared with the industry’s 17.7% growth.

Stocks to Consider

Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.

CF Industries Holdings, Inc. CF, scheduled to release earnings on May 7, has an Earnings ESP of +6.74% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for CF’s earnings for the first quarter of 2025 is pegged at $1.45, indicating year-over-year growth of 38.8%. CF Industries has a trailing four-quarter average earnings surprise of 18.1%.

Kinross Gold Corporation KGC, scheduled to release first-quarter earnings on May 6, has an Earnings ESP of +18.07%.
The Zacks Consensus Estimate for Kinross Gold's earnings for the first quarter of 2025 is pegged at 21 cents, indicating a surge of 111% from the year-ago quarter’s actual. KGC currently carries a Zacks Rank #3. Kinross Gold has a trailing four-quarter average earnings surprise of 23.6%.

Methanex Corporation MEOH, scheduled to release first-quarter earnings on April 30, has an Earnings ESP of +4.74%.
The Zacks Consensus Estimate for Methanex's earnings for the first quarter of 2025 is pegged at $1.25, indicating a surge of 92.3% from the year-ago quarter’s reported figure. MEOH currently has a Zacks Rank #3. Methanex has a trailing four-quarter average earnings surprise of 85.2%.

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This article originally published on Zacks Investment Research (zacks.com).

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